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Organized Crime and the Bright Side of Subversion of Law

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  • Astrid, Gamba
  • Giovanni, Immordino
  • Salvatore, Piccolo

Abstract

When Legislators award amnesties to `low-rank' criminals cooperating with the justice, top criminals may capture public officials to avoid being sanctioned. Optimal policies should anticipate this danger and fight it back by granting amnesties not only to low-rank criminals, but also to officials who plea guilty and report bribe givers. Even if the threat of being betrayed by their fellows may induce top-criminals to bribe prosecutors, these policies increase the conviction risk not only for top-criminals but also for low-rank ones, whereby increasing the risk premium that the latter require to participate the crime: the bright side of subversion of law.

Suggested Citation

  • Astrid, Gamba & Giovanni, Immordino & Salvatore, Piccolo, 2016. "Organized Crime and the Bright Side of Subversion of Law," Working Papers 336, University of Milano-Bicocca, Department of Economics, revised 17 May 2016.
    • Handle: RePEc:mib:wpaper:336
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    More about this item

    Keywords

    Criminal Organizations; Corruption; Leniency;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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